Each year, governments in Canada spend roughly $20 billion combined on a variety of economic development, R&D, and innovation programs. While federal and provincial governments share responsibility for economic development, there is almost no formal coordination on how these programs and incentives are delivered. This Mowat Note takes lessons from other areas of shared responsibility to suggest a path forward for better alignment of these programs.

The Board’s annual Scorecard, produced with the generous support of Certified Professional Accountants of Ontario over the past six years, offers a comprehensive overview of how the Toronto region performs among 24 international areas on key measures of economic performance and liveability. Scorecard has become the backbone of our advocacy outreach, recognized for its superior economic data analysis of the performance of other city-regions.

Paradox Lost examines two questions that have been of perennial concern to Canadian policy-makers, industry leaders, and economists alike: (i) Why has Canada’s research excellence not translated into more business innovation?, and (ii) How has Canada’s economy sustained relative prosperity despite weak innovation and correspondingly feeble productivity growth? In their examination of these questions, the report’s authors consider the complex ways in which research leads to innovation, and the factors that motivate Canadian business strategy. As such, the report explores Canada’s current paradox and identifies four megatrends that will pose challenges for Canadian businesses in the years to come.

The report, The State of Industrial R&D in Canada, provides an in-depth analysis of research and development activities in Canadian industries and is one of the most detailed and systematic studies of the state of IR&D ever undertaken in Canada.

While many reports have documented Canada’s historical weakness in industrial R&D, the Panel’s report sheds new light on the subject by examining areas of strength and how these strengths are distributed regionally. The report also examines the alignment of IR&D strengths with Canada’s areas of excellence in science and technology research and economic performance. Barriers and gaps that limit the translation of Canada’s S&T strengths into innovation and wealth creation are also identified.

The report identifies five key areas for action: going global; driving productivity growth; unleashing innovation and entrepreneurship; capitalizing on strength in talent and delivering smart, efficient government. Taken together, strong action on these economic priorities will propel Ontario’s businesses to the forefront of the new global economy. The Council believes that the province can improve its performance in each area, but that it will require stronger leadership and cooperation among all economic players – public and private sector alike – and a sustained commitment by Ontario firms to take risks, invest and enter the global stage.